How Regional Integration and Transnational Energy Networks Have Boosted FDI in Turkey (and May Cease to Do So) : A Case Study--How Geo-Political Alliances and Regional Networks Matter
Turkey has historically struggled to attract foreign investors. This paper argues that not only macroeconomic and political stability, but also regional integration explains the upsurge in foreign direct investment observed since 2005. The analysis...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank Group, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2014/07/19877174/regional-integration-transnational-energy-networks-boosted-fdi-turkey-may-cease-so-case-study-geo-political-alliances-regional-networks-matter http://hdl.handle.net/10986/19354 |
| Summary: | Turkey has historically struggled to
attract foreign investors. This paper argues that not only
macroeconomic and political stability, but also regional
integration explains the upsurge in foreign direct
investment observed since 2005. The analysis draws from a
qualitative framework. It discusses how, contrary to the
Customs Union Treaty for industrial products with the
European Union, the official start of the European
Union's accession to negotiations in 2005 encompassed a
wide set of reforms in several chapters directly or
indirectly affecting the business climate. The reforms
helped to enhance foreign direct investment attraction in
Turkey. However, it seems that the global economic slowdown
starting in 2009 and increasing Euro-skepticism have already
started to erode this effect. Only large foreign investment
in the energy sector observed in 2009-13, explained by the
energy security strategy of the European Union and the
privatization agenda, has prevented the collapse of foreign
direct investment inflows to Turkey. |
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